Instructions For Form 3800 - 2016


Department of the Treasury
Internal Revenue Service
Instructions for Form 3800
General Business Credit
Carryback and
carryforward for the amount of the credit
Section references are to the Internal Revenue
Code unless otherwise noted.
elected as a payroll tax credit on Form
Carryforward of
Future Developments
Unused Credit
The unused credit for the current year
For the latest information about
is determined by reducing the amount on
The carryforward may have to be
developments related to Form 3800 and
Part I, line 6 and Part II, line 36 by the
reduced in the event of any
its instructions, such as legislation
amount on Form 6765, line 44. If you have
recapture event (change in
enacted after they were published, go to
amounts on both Part I, line 6 and Part II,
ownership, change in use of property,
line 36, the reduction is made
etc.). If a section 1603 grant is received,
proportionately. No amount elected as a
the carryforward must be reduced to zero.
What’s New
payroll tax credit can be used to offset the
For further information, see Form 4255,
current year tax liability nor can it be
For tax years beginning after 2015, the
Recapture of Investment Credit.
included in the carryforward or carryback
research credit of eligible small
If you can't use part or all of your
businesses is allowed against Alternative
general business credit because of the tax
Minimum Tax (AMT). Also, qualified small
Carryforward of the energy credit and
liability limit (Part II, line 38, is less than the
businesses may elect to claim a certain
the renewable electricity credit. The
sum of Part I, line 6, and Part II, lines 25
amount of the research credit as a payroll
energy credit must be recaptured in full if a
and 36), carry the unused credit back one
tax credit. See the instructions for line 1c
grant is paid under Public Law 111-5,
year. To carry back an unused credit, file
and 4i, later.
section 1603, for investment in energy
an amended return (Form 1040X,
property that an energy credit was
The enhanced oil recovery credit,
Amended U.S. Individual Income Tax
previously claimed or for investment in
completely phased out since 2005, is
Return, Form 1120X, Amended U.S.
renewable energy property that an
applicable for tax years beginning in 2016
Corporation Income Tax Return, or other
election was made to treat the property as
because of the lower reference price per
amended return) for the prior tax year or
energy property. Recapture is applicable
barrel of crude oil in 2015. See the
an application for tentative refund (Form
to those amounts previously constituting
instructions for line 1zz, later.
1045, Application for Tentative Refund, or
the qualified basis for an energy credit,
Form 1139, Corporation Application for
General Instructions
including progress expenditures, that are
Tentative Refund). Generally, if you file an
also the basis for the 1603 grant.
application for a tentative refund, it must
Recapture is accomplished as follows.
Partnerships and S corporations
be filed by the end of the tax year following
must always complete the source
1. Any portion of the energy credit
the tax year in which the credit arose.
credit form. All other filers whose
related to that property that was used to
No part of the unused credit for
only source for a credit listed on Form
offset tax in a prior tax year must be added
any year attributable to any credit
3800, Part III, is from a partnership, S
to tax in the tax year the 1603 grant is
can be carried back to any tax
corporation, estate, trust, or cooperative
received. Recaptured tax is calculated on
year before the first tax year for which that
can report the credit directly on Form
Form 4255.
credit was first allowable. See
3800. The following exceptions apply.
2. Any carryforward of the energy
Rule, later, to determine which
credit related to that property is reduced to
You are claiming the investment credit
credits are allowed first.
zero to recapture the unused portion of the
(Form 3468) or the biodiesel and
renewable diesel fuels credit (Form 8864)
If you have an unused credit after
in Part III with box A or B checked.
carrying it back 1 year, carry it forward to
See Form 4255 for any other recapture
You are an estate or trust and the
each of the 20 tax years after the year of
event (change in ownership or change in
source credit must be allocated to
the credit. Any qualified business credits
use of property, etc.).
beneficiaries. For more details, see the
(as defined in section 196(c)) that are
instructions for Form 1041, U.S. Income
Carryforward of certain Form 6478
unused after the last tax year of the
Tax Return for Estates and Trusts,
credits. The alcohol mixture credit, the
20-year carryforward period (or at the time
Schedule K-1, box 13.
alcohol credit, and the small ethanol
an individual taxpayer dies or other
You are a cooperative and the source
producer credit expired for fuels sold or
taxpayer, such as a corporation or
credit can or must be allocated to patrons.
used after 2011. The unused alcohol
partnership, ceases to exist) may be taken
For more details, see the instructions for
mixture credits, alcohol credits, and small
as a deduction in the earlier of:
Form 1120-C, U.S. Income Tax Return for
ethanol producer credits (for all tax years)
The tax year following the last tax year
Cooperative Associations, Schedule J,
can't be carried to a tax year beginning
of the 20-year carryforward period, or
line 5c.
after 2014.
The tax year in which the individual
Change in Filing or Marital
taxpayer dies or other taxpayer ceases to
Who Must File
You must file Form 3800 to claim any of
Figuring the carryforward if a payroll
Your general business credit is limited to
the general business credits.
tax credit election is made. Qualified
your tax liability. Therefore, if you filed a
small businesses electing to claim a
joint return in a carryback or carryforward
portion of the research credit as a payroll
year and your marital status or filing status
tax credit must adjust the research credit
has changed, you may need to figure your
Dec 01, 2016
Cat. No. 10622Q


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